Route to partnership

Getting to know each other

There are many reasons why people may decide to sell their business and knowing these at the outset helps us to put together the right proposition.

Getting to know each other

Over the years we’ve helped many independent funeral directors, some of whom have faced all sorts of situations and dilemmas, with the concept and subsequent realisation of selling their business. If both parties understand the background, the business, the values and the motives of the other, there is a better chance of a positive outcome. This often starts as a blank sheet of paper to try to distil the key requirements and understand which of these areas can be addressed via an appropriate structure.

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Exchange confidentiality agreement

We understand the need for absolute discretion in any discussions or negotiations and we always ensure a confidentiality agreement is signed before any information changes hands.

Exchange confidentiality agreement

We guarantee that all information we receive is secure and confidential and that at the end of the period of confidential discussions, if the transaction does not proceed, it will be returned or destroyed. We ask that you make the same commitment to us.

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Preliminary information request

Placing a value on your business, reviewing financial information and gathering further information are the vital steps we’ll take moving our discussions forward.

Placing a value on your business

In order for us to reach a realistic and deliverable value for your business, we need some key overview information and some history to enable us to put everything in context.

Review of three years’ financial information

The main information requirement is three years’ worth of accounts and an understanding of the revenue and costs of the business, including an assessment of anything exceptional in nature.

Operational information

We need to know how you work, what assets you use, what your premises are like and how you would improve the business if you had the resources. We’re keen to look to the future as well as into the past.

Further information gathering

We’ll talk to you about your market, your competitors and what’s happening locally so that we paint the most detailed picture possible. This enables us to really understand your business and to be confident that our valuation is complete and deliverable.

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Valuation

Once we have an idea of value, we’ll discuss and consider which options best fit your requirements and any alternative ways of structuring a proposal

Valuation

We’ll always offer our best price and stick to it, unless some material issues are uncovered during the due diligence process. We never ‘price chip’ and see the transaction negotiations as an integral part of establishing our ongoing relationship with you.

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Formal offer

Once a price for the business has been agreed we’ll send you a formal offer which will reflect all the details from our discussions

Formal offer

Our deal structures are all cash and typically will be paid in the majority at completion, with an element of deferred consideration based on the continued support of the vendors post-completion. However, given the wide range of requirements from vendors, we have flexibility in this approach.

If our proposals are acceptable to you then we aim to progress quickly into the transaction process, starting with the ‘Heads of Terms’.

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Heads of Terms

The main purpose of the ‘Heads of Terms’ is to identify and provide a detailed list of all of the elements of the deal and a blueprint for the lawyers to work to in producing the relevant documentation.

Heads of terms

This is a key document that will ensure everyone involved has a clear understanding of what has been agreed. Spending time on this process at this stage is very worthwhile so that any issues are highlighted at the beginning of the transaction.In addition, the ‘Heads of Terms’ provides an exclusivity period for the necessary due diligence and legal work to be completed. Our acquisitions team will be on hand to support you through the process and you will have a personal contact at every stage of these negotiations.

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Exclusivity process

Exclusivity periods for our conversations, due process, due diligence, setting timescales and delivering on our promises are all part of the exclusivity process.

Exclusivity process

Exclusive conversations

In recognition of a commitment to spend time and money on both sides, the ‘Heads of Terms’ will provide for a period during which conversations will move to an exclusive nature. This period (usually 3 months, but is agreed by negotiation) allows for the due diligence process to be undertaken.

Due process

Funeral Partners’ chosen lawyers are highly-experienced in producing the documentation that accurately reflects the agreements that have been made. We have completed numerous deals together in the last few years. It is of paramount importance that you, the seller, also uses experienced lawyers to fully protect your interests. It can also save time to have experienced lawyers working for you - it is often a false economy to try and save costs in this important area.

If you wish, we can help identify experienced and competent commercial lawyers in your area who could work with you on your behalf.

Due diligence providers

In all the deals we carry out some standard legal due diligence which involves discussions with you and your advisors. This is necessary in order that all information relevant to the business is fully disclosed. In most cases we’ll also use an external accounting firm to carry out some financial due diligence which will focus on validating the information that you have supplied.

Set a date

In addition to setting a date for the exclusivity period, the ‘Heads of Terms’ will also normally propose a date for completion. This will depend on the complexity of the deal but is normally between eight and twelve weeks.

Funding

We’re able to deliver on our promises as we already have funding in place and our approval process is fast. Generally, the people with whom you have been dealing with will be the ones to sign the cheque.

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Completion

We know that a funeral home reflects the character of the owner and we want to retain this uniqueness wherever possible, whilst also enhancing the operation by utilising our skills and experience.

Completion

Consistency and heritage

It is always our policy to encourage sellers to remain working within the business after completion in whatever capacity suits our mutual requirements, be it as a Business Principal, Consultant or Funeral Director.

We would also actively encourage valued members of your team to continue to be part of the future with Funeral Partners.

Completion meeting

Once the legal process is complete the formal signing will take place, often with documentation being electronically exchanged. The money changes hands and a new chapter for your funeral home begins.

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Post-completion

Throughout the deal process we will have been working with you and discussing the typical changes that are likely to be made to the business post-completion.

Post-completion

This will ensure that the changes that are made are well thought out and introduced at a sensible pace, reducing the likelihood of any surprises. Changes mainly relate to systems, processes, administration and suppliers but will also include governance and legislative requirements.

Positive change

The first (and usually most welcome) change that happens on ‘Day One’ is the introduction of our own accounting and administration systems into the business. We guarantee that this is not a painful process – we do not have to install software or go through extensive training programmes. Our systems are modern, intuitive and internet-based. All we need is a computer, a browser, a broadband line and a few hours of familiarisation with your administration team.

Other functional disciplines can also be on hand to support the business, both in the transition period and thereafter for areas such as HR, legal, marketing etc.

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Future planning

We will discuss with you and your employees the timing of any changes we might recommend, but these will always be carefully planned and in full consultation with you.

Post-completion

Training assessment

We will spend time with all of your employees in order to gain an understanding of how things are currently done, identify best practice that could be used elsewhere in the business, and where appropriate, introduce proven new processes. We’ll also produce a training plan to make sure these changes are introduced smoothly.

Investing in your premises

Together we’ll review all aspects of your premises, particularly how they are presented and if, for example, signage, has to be updated to reflect the new ownership.

We will always seek to retain the brand heritage of your funeral home but will also talk to you about the way we present our funeral homes, our vehicles and our people.

Planning new collateral

Your local trading name is the most important asset. However, we do need to reflect our ownership of the business in all our customer communications. We will introduce new stationery, brochures, etc that will show both your funeral home name and an acknowledgement that it is now part of the Funeral Partners business.

Operational planning

Funeral Partners’ Fleet Manager will very quickly produce an assessment of the fleet requirements and will have a suitable replacement plan in place within a few weeks. A great advantage of joining Funeral Partners is the access it gives to a much greater pool of resources and the ability to use these to deliver better quality of service to our families.